Green bonds and climate change: an analysis on green financial instruments and corporate decarbonization strategies in the utilities sector.

Greenhouse gases emissions are the drivers of climate change and recently a connection between the financial sector and environmental impacts has been established. This thesis aims to explore how climate change and finance are linked, and in which way green financial instruments can help the implementation of decarbonization plans; in particular, the strategies of investment in sustainable activities of a group of companies from the utilities sector has been assessed, in relation to the issuance of green bonds. First the research analyzes the current state of the climate alteration and the exposure to climate risk of the financial market, together with an excursus on international initiatives created to address the problem. Green bonds requirements are then assessed, focusing on the differences that could influence market players. Companies selected from the utilities sector are described and then, by comparing green bonds issuers to non-issuers using capital expenditures and GHG emissions, it is evaluated if the presence of green financial instruments can effectively have an impact on the strategies to reach net zero emissions. Results, though hindered by the lack of parameters, show mainly that the companies do not totally exploit green finance, with sustainable activities that could be eligible but are not considered; additionally, higher disclosure could provide better conditions for a more in depth analysis.